Deviant Strategy And Non-efficiency Investment-an Adjustment Effect Based On Market Competition

Investment efficiency has always been an important subject often encountered by many scholars in the study of corporate governance issues.As one of the three major theories of enterprise micro-research,investment has important practical economic significance.The investment behavior of an enterprise is closely related to its operating ability,profitability,and growth ability,which affects the ultimate intrinsic value of the enterprise and its performance in the capital market.Investment also plays an important role in driving the national economy.Therefore,management's correct investment decisions are crucial.However,many years of research by many scholars have found that inefficient investment behaviors in the real market are very common,specifically manifested in over-investment and under-investment.On the one hand,information asymmetry makes companies face financing constraints and lacks sufficient funds for projects with a net present value greater than zero;on the other hand,due to the existence of the principal-agent problem,management has overinvested for its own interests.Information asymmetry and principal-agent problems are the two main paths affecting investment efficiency.The specific factors affecting inefficient investment have been the subject of many scholars' research,that is,how the specific characteristics and behaviors of enterprises and management-related factors can strengthen or weaken these two issues to affect the investment efficiency of enterprises.Strategy is the overall plan for the development of an enterprise.The management manages to formulate a reasonable strategy to solve the current and future difficulties faced by the enterprise,and obtain a long-term development and stable position.The implementation of the strategy is also largely because the strategy of the company will definitely affect the investment and financing decisions of the company,and thus affect the investment efficiency.In order to adapt to the development of the market,each enterprise will form a set of unique strategies suitable for itself in the course of its own operations.But the strategies of these specific companies are not necessarily the perfect example of the industry,which leads to differences in strategies.Therefore,this article attempts to consider the impact of corporate strategy deviation on investment efficiency from the perspective of strategic differences.At the same time,as the external market environment becomes more complex,whether it is management's strategy or investors' research on investment targets,it is necessary to proceed from the external environment to consider the impact of the company's strategic level on financial decisions and behaviors.This article will also introduce market competition for external governance mechanisms,and explore whether external governance mechanisms can regulate the impact of strategic differences on corporate investment efficiency.This article starts with theoretical analysis and uses empirical research design models for testing.First,this paper reviews the relevant literature on strategic disparity,inefficient investment,and market competition,and reviews the existing literature.Then it introduces the three theoretical foundations of principal-agent theory,information asymmetry theory,and company-specific risk theory.Based on the literature summary and theoretical analysis,the effects of strategic differences of enterprises on investment efficiency and the moderating effect of market competition on the relationship between the two are reasoned in detail.Based on this,the two major hypotheses of this paper are derived,and the measurement model is designed according to the hypotheses.This article selected 2010-2018 A-share listed companies as the research object.After data processing,a total of 18012 samples were used,and the relationship between strategic disparity and investment efficiency was tested using a multiple regression model.The two aspects are tested separately to analyze which type of inefficient investment behavior is more likely to be caused by strategic differences.At the same time,market competition is added to the model to analyze whether the relationship between the degree of corporate strategy differences and investment efficiency will be affected under different market competition environments.The robustness of the model was tested using four different methods to further validate the research model in this paper.Finally,the conclusions of the full text are summarized,and the deficiencies of the research are put forward.The specific research conclusions are as follows:(1)In the entire sample,about 62% of underinvestment and about 38% of overinvestment indicate that inefficient investment behavior of A-share listed companies is very common,and underinvestment is wider compared with overinvestment.(2)There is a significant positive correlation between the coefficient of strategic disparity and the inefficient investment of the enterprise,and it has a significant positive effect on both overinvestment and underinvestment.(3)Market competition has played a role in regulating the relationship between the degree of strategic difference and inefficient investment.However,from the results of the sub-samples,the level of market competition faced by enterprises can effectively reduce the impact of strategic differences on excessive investment of enterprises,but not Positive correlation between mitigation strategy divergence and underinvestment.Through empirical research,this paper analyzes the relationship between the degree of strategic disparity and inefficient investment and the moderating effect of market competition on the two,which enriches the research results of influencing factors of inefficient investment.Previous studies have mostly focused on the macro level and corporate governance.Starting from other aspects,less attention is paid to the effect of corporate strategy on investment efficiency.For creditors,shareholders and other stakeholders,they can be aware of the possible relationship between strategic level and inefficient investment,and help them take corresponding measures to optimize corporate governance and improve investment efficiency.